Integrating Saudization Goals into Enterprise Workforce Planning
With that, enterprises can no longer rely on the temporary hiring of local workers to prevent their penalty. To do great business, the integration of Saudization goals must be part of the enterprise workforce planning day-to-day.
The Reason Old Hiring Ways No Longer Work
The conventional way of hiring Saudi nationals on a very last-minute basis to change their Nitaqat color to green on the Qiwa portal has become both the worst and the most expensive way of dealing with this situation in these times.
To begin with, the new framework introduces very high Saudization rules for certain fields: sales/marketing is at 60% and engineering is at 30%.
In addition, there are strict minimum rules as to salary, for example. If one pays a Saudi employee less than the required minimum wage floor, the employee will not fully count towards the company's official quota.
Simple Steps to Sync Saudization with Workforce Planning
1. Track Future Openings Early
Do not hold off until a foreign expat employee departs. Rather, analyze your departments' schedules for the next 6 to 12 months. Discover which positions are going to be available. Then, determine if these vacancies are in the categories that will be 100% or highly Saudized.
2. Link Your Quotas with Finance Planning
Saudization definitely changes your wage bill. Since some job quotas need certain salary minimums to qualify for your Nitaqat level, finance and HR departments must work together very closely. Also, you have to make a chart of required salary minimums during your yearly budget so that you are not caught unprepared.
3. Develop Future Leaders
The shortage of skilled professionals in specialized fields such as technology and engineering will not be resolved overnight. Therefore, it is very wise to forge alliances with local universities, take advantage of the internship system, and make use of the programs of the Human Resources Development Fund (HRDF). Early education of Saudi youth results in a loyal workforce, which your business will benefit from.
4. Improving Employee Retention
Local hiring is only half the battle; retention secures long-term Nitaqat compliance. Providing structured career paths, competitive compensation, and a positive work environment prevents costly turnover. Sudden departures, local or expat, can instantly drop your compliance tier, freezing vital visa permissions.
The Value of a Strong Workforce Partner
A company's own recruitment staff often faces the task of changing goals, keeping up with Qiwa rules, and sourcing qualified local talents, which can lead to a total overload. As a result, many forward-thinking companies work with workforce specialists in the local market.
Besides helping you identify your labor shortages in the coming periods, an experienced partner also saves you the time and effort of doing manual job board checking and regulatory tasks and helps find the best candidates among Saudi citizens for the roles of the middle and top levels of the hierarchy. This type of assistance will allow you to comply fully with the legal requirements and be rated high in Green or Platinum Nitaqat classes, and at the same time, your company will be in the growth business only.
Optimize Your Saudi Workforce Strategy Today
Complying with Saudization law and keeping your business operations running smoothly at the same time is absolutely possible. TASC KSA offers top-notch RPO services, contract staffing, and local compliance advisory services, which have been developed with the changing local Saudi work culture in mind.
You can trust us to take care of your compliance audit, expedite your local hiring, and secure your Nitaqat rating at the same time. Give TASC KSA a ring today and we will help you develop a strong workforce of employees who are legally compliant and loyal to your business.
Frequently Asked Questions
1. What is the latest change in the Nitaqat program?
The new phase of the program has updated industry-specific requirements through 2028. It also has raised the level of local talents required to maintain a very compliant standing.
2. Would a business be allowed to reach Saudization targets with the base salary?
Not unless the role is considered to be of a certain type by the Saudization committee. A certain minimum salary is set by the Saudization committee to account for 100% of the role's contribution toward achieving your targets. As an illustrative case, it's a rule that marketing roles cannot start below SAR 5,500.
3. How does a drop into the Red Nitaqat band affect a company?
It would become difficult or even impossible to renew foreign employee passports, authorize new work permits, or shift a new sponsorship. It might easily take a company months of costly changes to regain a green band, which is the highest category.
4. Are there job roles that can only be filled by Saudi Arabian nationals?
Certain roles in a business can only be filled by local workers. The MHRSD from time to time publishes localized job lists with such information. For example, administrative staff positions in wellness centers, housing supervisor roles, and several customer service titles can only be locally hired.
5. What are the benefits of workforce planning in compliance improvement?
With workforce planning, companies can foresee the need for a certain number of vacancies, and accordingly, they will be able to hire and conduct training programs for local workers just before their quotas expire.
